SoundHound AI

SoundHound AI (SOUN) Q1 2025 Earnings

Reported May 8, 2025 at 4:22 PM ET · SEC Source

Q1 25 EPS

$-0.06

BEAT +5.21%

Est. $-0.06

Q1 25 Revenue

$29.1M

MISS 4.10%

Est. $30.4M

vs S&P Since Q1 25

-62.7%

TRAILING MARKET

SOUN -29.4% vs S&P +33.2%

Market Reaction

Did SOUN Beat Earnings? Q1 2025 Results

SoundHound AI kicked off 2025 with a record first quarter, posting revenue of $29.13 million, a 151% year-over-year surge, as the voice AI company continued to diversify its customer base to the point where no single client represented more than 10% … Read more SoundHound AI kicked off 2025 with a record first quarter, posting revenue of $29.13 million, a 151% year-over-year surge, as the voice AI company continued to diversify its customer base to the point where no single client represented more than 10% of sales. The headline GAAP numbers looked extraordinary on the surface, but the apparent profit was almost entirely a mirage: a $176.10 million non-cash gain from the mark-to-market revaluation of contingent acquisition liabilities, tied to SoundHound's falling stock price during the quarter, inflated GAAP results beyond recognition. Strip that away, and the non-GAAP loss per share came to $0.06, with a non-GAAP net loss of $22.33 million, underscoring that the company remains deep in investment mode. Gross margins also compressed meaningfully, with non-GAAP gross margin falling to 50.8% from 65.5% a year ago. Still, management reaffirmed full-year 2025 revenue guidance of $157 million to $177 million, pointing to an expanding pipeline and growing cross-sell opportunities from its acquisitions as reasons for confidence heading into the rest of the year.

Key Takeaways

  • 151% year-over-year revenue growth driven by customer diversification — no customer above 10% of revenue
  • Cross-sell and upsell opportunities from acquisitions
  • Expansion across restaurant, automotive, healthcare, retail, energy, telecom, and financial services verticals
  • GAAP net income of $129.9 million driven primarily by $176 million non-cash gain from mark-to-market of contingent acquisition liabilities
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SOUN YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

“SoundHound continues to extend its reach and create new possibilities for real world AI applications. The release of our complete AI agent platform delivers full, voice-enabled Agentic AI for customers across all industries.”

— Keyvan Mohajer, Q1 2025 Earnings Press Release